When you’re applying for a loan or caravan finance option, it’s always best to put yourself in a position to get an approval. Caravans, after all, are big investments. They require a significant amount of resources to get, not just regarding money, but in time and effort as well. Given this, doing whatever you can to secure your caravan finance is always worthwhile.
The key here is to plan and prepare ahead as well as you can. Yes, this takes plenty of time and effort to do. But the benefits of good preparation far outweigh the amount of work necessary to do it right. These benefits not only translate to more choices for your caravan but perhaps even bigger savings overall. The great thing about this is that proper preparation may not be as difficult or as time-consuming as you may think. With smart planning and proper guidance, you’ll be well on your way to securing your caravan loan.
Here are five tips to do it well:
1. Prepare accordingly
Like in any other aspect of life, nothing increases your likelihood of securing your caravan finance than good preparation. By this, we don’t mean simply canvassing different lenders and enquiring about loans (although these are important are part of it too!). Rather, good preparation is all about ensuring you fulfil each requirement for getting your caravan and having a plan in place for any potential issues that may arise. As always, this is much easier said than done. But if you do it right, then you’ll put yourself in a better position to get an approval.
Good preparation for your loan involves several different factors. Knowing your credit rating, for example, will help you know what to expect from banks and lenders when it comes to negotiating your loan. These days, it’s easier than ever to access your personal credit report. Credit reporting bodies like Veda, Experian, and D&B can easily send you an accurate assessment of your credit rating upon request and paying a fee.
It’s also best to select and research your top options for lenders beforehand. This way, you can get a better idea of what their loan programs are like and how well these fit into your objectives.
Remember that good preparation here is all about being as thorough and meticulous as you can be. It may not be exciting, but it can get results.
2. Set a budget and stick to it
One of the most effective ways to secure your loan is to set a budget. This not only sets the tone and direction for your search, but it also makes the entire process of getting a caravan more efficient.
When it comes to setting a budget, it’s important to be as realistic as you can be. Sure, increasing your budget is thrilling because it expands your choices. But if your budget is beyond your actual means, then you’re just setting yourself up for trouble down the road. The further you go from what you can truly afford, the more likely you’ll face financial problems in the future.
That’s why, more often than not, it’s better to be too safe than too risky when it comes to establishing your budget. This way, you’re more certain that you can manage whatever financial commitments may come from getting your caravan.
A budget is there for a reason: to help keep you in line whenever you’re tempted to go beyond your means. Stay on your budget as much as possible and work with what you have.
3. Understand what you’re committing to
With so many loans and caravan finance options available today, it’s easier than ever to simply pick one and go from there. This, however, can be a big mistake. If you don’t fully understand what loan you’re applying for, then you may be trapping yourself to an unfavourable loan or payment scheme.
To prevent financial headaches in the future, it’s best to understand what you’re getting into from the very beginning. Go through each loan option that you’re targeting, and be as meticulous as you can. You should aim to understand all the details involved, from its term length and interest rates throughout the loan period to its payment schemes and schedule. It’s also helpful to be aware of any specific conditions and penalties that a loan program may have.
Always keep in mind that when it comes to money and finance, no one likes surprises. The more you understand what you’re getting into, the less financial problems you’ll have later on.
4. Shop wisely
There’s no question that the more choices you have, the more likely you’ll find the right caravan for you. That’s why you should shop around different sellers as much as you can. Not only will this give you more choices, but it can also help you find the best offer available. To do this effectively, however, it’s not enough to simply shop around for the sake of it. You should also shop wisely.
This involves more than just shopping for different types of caravans. It also involves shopping around for appropriate lenders, visiting different sellers, and analysing different loan plans.
Shopping smart also doesn’t just involve knowing where to shop, but also when. Several sellers, for example, regularly have sale periods and special discounted rates throughout the year. This includes times when new models arrive, the end of the financial year, or even on holidays and special occasions.
The more good deals you can find, the less you’ll have to borrow for your loan. This, in turn, makes it more likely for your loan to be approved because lenders can be more confident that you can pay it back.
5. Meet lenders halfway
Lastly, remember to always meet your lenders halfway if you want to make it more likely for your caravan finance to be approved. This is a tip that’s more about your mindset and approach than any specific part of the loan.
Meeting lenders halfway is all about doing your part of the process. This includes all of the tips above as well as working together with your lender rather than simply imposing your needs. The easier you make the process for your lender, the more likely your loan will be approved.
Need more help and information for securing your caravan loan? Just call us at 1300 361 360, and talk to one of our specialists. We’ve been providing caravan finance Australia-wide for years, so we have the experience and expertise to help you with whatever you may need for it.